Asia Press Agency

Tag: Settlement

  • SpiceJet Settles with Engine Lessor in High Court Dispute

    SpiceJet Settles with Engine Lessor in High Court Dispute

    SpiceJet has resolved its legal dispute with engine lessor Engine Lease Finance BV in the Delhi High Court through a settlement agreement. As part of the settlement, SpiceJet will pay over $2 million and return the leased engines by January.

     

    The settlement agreement stipulates that SpiceJet must fulfill its financial obligations by January and return the engines by January 25. Engine Lease Finance is not obligated to reverse the terminated lease with the airline as part of the settlement. If SpiceJet fails to adhere to the terms of the agreement, Engine Lease Finance retains the right to take legal action.

     

    The company released a statement in which it confirmed the amicable resolution of the dispute with Engine Lease Finance Corporation Aviation Services Ltd outside of the courtroom.

     

    The court had initially set a deadline until October 16 for SpiceJet and indicated it might prevent the airline from using the leased engines if no settlement was reached.

     

    In court, Engine Lease Finance had argued that SpiceJet should be prohibited from using the engines, as it had provided ample time for the airline to address its payment issues before terminating the lease. SpiceJet, on the other hand, had requested additional time to make the payment, emphasizing that the engines were still in use.

     

    The company is currently facing multiple legal challenges in various courts, including a pending settlement with aircraft lessor Celestial Aviation Services in the National Company Law Tribunal (NCLT). Three other lessors—Willis Lease Finance Corp, Wilmington, and Aircastle—have also filed cases against SpiceJet in the NCLT over unpaid dues.

     

    The airline is also embroiled in an arbitral award execution case with former owner Kalanithi Maran over dues of ₹397 crore, with SpiceJet having recently paid ₹100 crore of the total sum.

     

    In the Supreme Court, the company is contending with a legal challenge from Credit Suisse over a payment default. The court has permitted the airline to make monthly payments of $1 million to the Swiss bank over the next six months to settle its outstanding dues.

  • UBS Nears Settlement Over Credit Suisse’s Mozambique Ship

    UBS Nears Settlement Over Credit Suisse’s Mozambique Ship

    UBS Group AG is said to be on the verge of a settlement with the government of Mozambique concerning Credit Suisse’s involvement in a ship-financing scandal that took place in the African nation. The aim of this potential settlement is to avoid a lengthy 13-week trial scheduled to take place in London. Credit Suisse, which was acquired by UBS in June as part of a government-brokered takeover, has reportedly made an offer that is close to being accepted in negotiations with the Mozambique government.

     

    These details come from anonymous sources familiar with the matter, who wished to remain unidentified due to the private nature of the negotiations. Should a settlement be reached, it is expected to be solely with Mozambique, according to one of the sources.

     

    Mozambique has alleged that Credit Suisse disregarded warning signs and the corruption involving its own bankers in deals made about a decade ago. These transactions were intended to finance the creation of a new coastal patrol force and a tuna fishing fleet in Mozambique. While a settlement with Mozambique may be in progress, the trial in London is still set to proceed, with Privinvest, the shipbuilder owned by billionaire Iskandar Safa, as one of the defendants.

     

    This case is among several legal challenges that UBS has inherited from its rescue of Credit Suisse, and the bank has been actively seeking resolutions. Recently, the US Department of Justice intensified its investigation into alleged compliance failures at Credit Suisse that enabled Russian clients to evade sanctions.

     

    UBS faced a setback on September 4 when a London judge ruled that Mozambique President Filipe Nyusi should have immunity from allegations related to the multibillion-dollar fishing-boat scandal. Approximately two weeks later, the Supreme Court issued a separate ruling, stating that the claim against UBS amounted to around $1.5 billion. This claim had initially been brought against Credit Suisse and the French builder of the tuna boat fleet.

     

    In 2021, Credit Suisse agreed to pay nearly $475 million to settle multiple investigations into its role in the fundraising scandal, which resulted in the looting of hundreds of millions from Mozambique and pushed the country into an economic crisis. As part of the settlement, a European unit of Credit Suisse pleaded guilty to a single charge of conspiracy to commit wire fraud, and the bank entered into a three-year deferred-prosecution agreement with the US Justice Department.

     

    The Financial Times had earlier reported that UBS was seeking a last-minute deal to avoid the impending trial, citing individuals briefed on the discussions.